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Magazines Post Page and Revenue Gains for June and First Half 2004

Press release from the issuing company

New York, NY (July 9, 2004) Total magazine rate-card-reported advertising revenue for the month of June 2004 closed at $1,768,120,477, an increase of +8.4% compared to June of last year, according to Publishers Information Bureau (PIB). Ad pages totaled 19,267.51, closing at +3.1% over June 2003. Year-to-date, rate-card-reported revenue closed at $9,779,662,850, an increase of +7.3%, with ad pages totaling 108,677.31 for a +0.5% gain. June 2004 vs. 2003 Half of the 12 major advertising categories recorded both page and dollar increases in June. Last month’s increases were led by double-digit page and rate-card-reported revenue gains in the Media & Advertising; Apparel & Accessories; Financial, Insurance & Real Estate; and Retail categories. (Twelve categories are the most significant contributors to PIB revenue, comprising approximately 85% of total advertising spending.) January – June 2004 vs. 2003 In the first half of 2003, seven of the 12 major advertising categories saw an increase in both pages and revenue over June 2003. The strongest performers were Food & Food Products; Media & Advertising; Financial, Insurance & Real Estate; and Public Transportation, Hotels & Resorts. “A combination of growing consumer and advertiser confidence continues to play a key role in magazine advertising’s improvement,” commented Ellen Oppenheim, EVP/Chief Marketing Officer, Magazine Publishers of America. “The strengthening economy bolstered Financial, Insurance & Real Estate into a fourth consecutive month of growth. Apparel & Accessories and Retail also experienced a surge in June, with significant contributions by advertising for summer fashion and accessories, and department stores and shopping centers.” PIB Revenue Reporting Rules Revised As announced in March, beginning with June 2004, PIB magazine advertising rate card revenue is reported only on a national and regional, open rate basis. Previously, magazine reporting permitted the optional use of category rates. In addition, revenue for inserts/outserts is reported on an open rate basis. Premiums, other than bleed, coloration, covers, and regional and demographic editions listed on the rate cards, are excluded from reported revenues. To allow for consistent year-over-year comparison, PIB rate-card-reported revenue for the first half 2004 and full year 2003 has been restated. After the restatement, the overall PIB revenue for full year 2003 totaled $19.2 billion, reflecting an increase of 4.6% (+$852 million), while January through May restated revenue is $8.0 billion, up 4.2% (+$322 million). Pages are unaffected. “Our goal in revising the PIB reporting rules is to provide consistent and verifiable magazine advertising data by removing flexibility in data reporting,” stated Dom Rossi, PIB Council Chair, and VP & Executive Director of Corporate Sales, The Reader’s Digest Association, Inc.